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Wednesday, May 31, 2017

Rene talks about how By The People Document Preparation Service in Fairfield CA can help people with uncontested legal matters in an inexpensive way. See more at http://www.bythepeopleca.com, or call 707-428-9871

Monday, May 29, 2017

Many families struggle with how to manage the finances, health care and other personal matters of adults who are unable to care for themselves. You may decide to pursue an adult guardianship if an adult is mentally or physically unable to make his or her own decisions and does not have a living will and power of attorney that provide a competent person to make those judgments.

Sunday, May 28, 2017

You can start planning your estate at any time. Typically, though, most people don't begin to draft their Will, or establish a trust to hold property, until the "big" things in life happen -- like getting married, buying a home, having children, or starting a business.

Thursday, May 25, 2017

Rene at By the People talks about Deeds of trust and how they can help people make the necessary changes to their title for a number of different reasons. Call 707-428-9871 with any questions, and visit the website at http://www.bythepeopleca.com

Wednesday, May 24, 2017

Many begin arranging their estate plans when they retire. But
they should also arrange for what happens when they become unable to
make decisions but are still living.

Dementia and other
afflictions leading to mental disabilities destroy our ability to act
for ourselves - such as handling our financial and medical decisions. If
you haven't formally assigned someone to make those decisions for you,
someone else will - and may not make the kind of decisions you'd like.

But
you can only choose someone to act for you when you're mentally
competent. So, below, I discuss the type of powers of attorney you can
assign to anyone to act for you.

When you assign a power of
attorney to someone, he can then act on your behalf. That person does
not have to be a lawyer. It can be anyone who's of legal age and who you
trust to handle decisions as you would want them handled.

Most
often, you'll need to validate this assignment with a signed - and
possibly notarized - written document since hospitals, banks and the IRS
generally want proof when someone else is acting for you.

According
to the wording of your assignment, you can limit the area and time for
which you assign the power of attorney. You may assign one person a
power of attorney to handle your financial affairs, and another person
to handle your heath-related decisions.

You can assign someone to
begin acting for you under his power of attorney at any time. But since
we're concerned with the circumstance of you becoming mentally
incompetent to act, let's review some different types of powers of
attorney you can choose from.

A Limited Power of Attorney means
someone you choose can act for you to handle some restricted area of
your life such as paying bills, handling financial decision, or
investing. You'd have to specify those areas clearly.

A General Power of Attorney is not restricted to any single area. So whoever you chose can act for you in all respects.

Any
power of attorney will cease when you become mentally incompetent
unless you specify otherwise. Two types of powers of attorney remain in
effect under your incompetence - which is the point of this article.

A
Durable Power of Attorney keeps your assignment valid even when you
become incapacitated. So be sure to make your assignment 'durable' if
that's your intention.

A Springing Power of Attorney comes into
effect only when you become incapacitated - and not before. Of course,
for this power of attorney to come into effect some 'proof' that you are
sufficiently incapacitated will be required. This may require a
doctor's letter and some court action if necessary.

It might
happen that someone you to whom you assign a power of attorney may be
unscrupulous and will waste or steal your assets. This can happen if
you're elderly and slowing down about things. So, if you're unsure of
how someone will handle your affairs, you may want to grant him power of
attorney while you're in good mental health to see how he performs.
That's not a bad idea, in any case, since you can discuss with him what
you think of his decisions to help frame his future ones.

Unless
you make a power of attorney irrevocable, you can revoke it simply be
telling that person his assignment is revoked. But be sure to notify
others that the power was revoked, too.

Health Care-Related Power
of Attorney When you become incapacitated, you may want some one to make
health-related decisions for you. You do this with a Medical Durable
Power of Attorney. This is also called a Health Care Proxy. It takes
effect only when you require medical treatment and your physician
determines that you can't communicate your wishes concerning treatment.

Again,
you must execute this document when you're competent. Your health care
proxy ensures your instructions will be carried out. Some states differ
on what decisions can be included in a health care proxy. So check the
rules in your state.

Tuesday, May 23, 2017

There are many legal terms that are known to us, but only by name. We do not understand the proper meaning of them. The reason may be; everywhere they are explained in a hard legal language. In the lack of this knowledge one can struck into drastic situations. In today's world forgery and fraud related crimes cases are increasing like nothing. To avoid them we have to be attentive about our property and belongings. The money, assets and property belong to us and we have to take care of them. By understanding these terms you are giving value to your property. And, I will feel happy if I can help you in understanding these terms. If you really feel it difficult to understand these terms in a legal way, then here, I'm interested to explain all these terms in a very simple and common language.

Let's start with "Will".

-Will: You must be aware that will is a legal document. In it the distribution of the property of a person is explained. The distribution of all belongings is done according to owner's wish. The age category for applying a will is 18 or above 18 years.

-Testament: A testament is also a legal document. It also includes the distribution of owner's property. And, it also follows the owner's wish.

Then what makes a difference?

A "will" is a document which includes the distribution of owner's real property. Whereas, a "testament" is a document which includes the distribution of owner's personal property.

You might not understand that, what is the difference between a real property and a personal property?

There are two categories in property. One is Real and the other is Personal. A real property can be replaced by the term real estate. That means land or the things permanently attached with land that can be a house or a building, the things under the land, anything which can't be separated from the land. And, the personal property can be of two types. One is Tangible and the other is Intangible. Tangible personal property is something you can touch. And, it includes jewelry, home accessories like: sofa, bed, locker and other items. The intangible personal property is a non-materialistic property. That includes patents, copyrights, bonds and stocks etc.

-Testator: The owner of the property and the person who is going to sign the will and testament is called testator. He must be mentally stable at the time of creating and signing the will and testament. He must be at least 18 years old at the time of signing the will and testament.

-Beneficiaries: The people who are going to be the owners of the testator's real and personal property are called the beneficiaries. A beneficiary has to be 18 or above 18 years. If a beneficiary is less than 18 years old then he and his part of property will be under the care of a care taker.

-Executor: An Executor is a person who is responsible for the distribution of the property. This distribution must be according to the will and testament. The person who is going to be the executor can also refuse to be so. And, if he accepts it then the court dispatches a document which is called "letters testamentary". It is issued to legally allow the person to be the executor.

Note: Don't get confused between the executor of the will and the beneficiaries. In a simple language, an executor is the care taker of will and the beneficiaries are the (would be) owner of the property.

-Probate: It is a legal process, which is held at the probate courts. Some matters are cleared in this process, like who is going to be the executor of the will, who are going to be the legal beneficiaries etc.

Keep these terms in mind. Don't get cheated and do value your property, this is really very important.

Monday, May 22, 2017

First, let's
identify for whom this article is written. This article is for new
entrepreneurs thinking about starting an online business which operates
in the United States.

The information contained here is "entry
level" for people just starting out in online business. It is not
written for people in more sophisticated situations. That being said,
let's get going.

Most new online business owners seem to "jump off
the deep end" without giving much thought or doing much planning as to
how they will operate their businesses.

That is a poor approach to
starting a business. In reality, there are a number of considerations
that need to be taken into account at the outset if you want to succeed
with your online business and not expose yourself to problems down the
line.

Forms of Business Entities

One of the
first matters to consider is whether to form an entity to operate your
business. Let's begin at the very basic level and quickly identify your
options with respect to operating your business.

For most new businesses, your options are:

Sole proprietorship

Partnership

Corporation (S-corporation or C-corporation)

Limited Liability Company

There are other forms of doing business, but they are
usually for more sophisticated enterprises, so we'll confine our
discussion to the ones listed above.

Sole Proprietorship

This is the default option, one that many new entrepreneurs wind up using because they never really think about the issue.

Basically,
a sole proprietorship is just you doing your thing. You and your
business are not separated legally. That can be quite significant, as
we'll see below.

Advantages of a Sole Proprietorship

Here are the advantages for choosing to do business as a sole proprietor:

Ease of Formation. A sole proprietorship is the
simplest business format to form, because there is no formation. It's
just you doing business as you. There is no separate legal entity within
which you are operating your business. You may still require business
licenses, tax id numbers, etc., but there is no separate entity to be
formed and operated.

Low Cost of Formation. Since it is not necessary to
form a separate entity to operate as a sole proprietorship, it is less
expensive to get started because you don't have to pay an attorney or
company to form a special entity for you and you don't have to pay any
of the fees to you state that are required to form a corporation or LLC.

No Separate Income Tax Returns. Because there is no
separate entity involved in the operation of a sole proprietorship, the
IRS doesn't require you to file any separate income tax returns. You
will normally just add a schedule (Schedule C) to your good old Form
1040 and file away.

Disadvantages of a Sole Proprietorship

Here are the disadvantages of operating as a sole proprietorship:

Personal Liability. This is the overriding disadvantage
of doing business as a sole proprietor. Because there is no separation
between you and your business, if you get sued all of your personal
assets (house, car, investments, etc.) are at risk. Given the fact that
we live in a litigious society where people are suing other people over
ridiculous claims, and sadly prevailing sometimes, this is a major
concern. If you end up with a judgment against you, you risk losing most
of your personal assets.

Less "Professional" Image. Doing business as "John
Smith" doesn't present the professional image in the business world
that, for example, "World-Wide Multimedia, LLC" would. This may not be a
major concern for you, but it is something to consider, especially if
you are trying to get other businesses to recognize you as a joint
venturer, affiliate, or member of their CPA network.

Partnerships

We won't spend much
time on this one, because it is relatively rare in the online world. A
partnership is an association of two or more people or entities for the
purpose of engaging in business.
So, for example, if you and your
brother-in-law want to start a business, a partnership could work. It is
not something that is normally recommended, though, for reasons
explained below.

Advantages of a Partnership

Frankly, in most situations there are none.

Disadvantages of a Partnership

Here are the primary disadvantages of a partnership:

Separate Tax Returns. Partnerships are required to file
their own, separate income tax returns, so paperwork is increased
without commensurate advantages being offered.

More Complicated to Form. Partnerships normally require
paid assistance in the formation process, so costs are increased, again
without offsetting advantages in most circumstances.

Increased Liability. This is the big one. A partnership
does not protect your personal assets. Even worse, since you have one
or more partners involved, you potentially become liable for their
activities too, whether or not you actually participated in a given
transaction. In addition, your partners can normally obligate the
partnership to financial obligations and contractual agreements,
sometimes without your knowledge. So, there is definitely increased
personal risk to you financially in a partnership.

And, you must be cautious when pursuing business
objectives with other people. You can end up in a partnership without
meaning to.

Since there are normally no formal organizational
requirements for a partnership, a handshake may be all that is required.
Just the act of doing business and sharing profits and losses with one
or more other people can result in the courts declaring you to be in a
general partnership, whether that was your intent or not.

Corporations

A
corporation is a separate legal entity that is formed to operate your
business. It is that separation between you and your business that can
be a major advantage.

You will hear two broad types of
corporations discussed: C-corporations and S-corporations. Those
distinctions are a topic for another article, but they will be mentioned
briefly.

In a nutshell, a corporation is a corporation, the
S-corporation/C-corporation distinction is merely an election made by a
corporation as to how it wants to be treated for income tax purposes by
the IRS.

Advantages of a Corporation

Here are the principal advantages of using a corporation to operate your business:

No Personal Liability. The main advantage has already
been hinted at. A corporation is a separate legal entity from you
personally. Assuming you set things up properly and adhere to the
operational requirements of a corporation, if your incorporated business
gets sued only the assets owned by the corporation are potentially
exposed to the business's liabilities. Your personal assets are shielded from liability.

More Professional Image. As discussed above, a corporation presents a more professional image to the world than a sole proprietorship.

One or More Owners. The owners of a corporation are
called "stockholders." The law allows a corporation to have one or more
than one stockholder. S-corporations may not have more than 100
stockholders (at the time of this writing). C-corporations may have an
unlimited number of stockholders.

Disadvantages of a Corporation

Here are the main disadvantages of a corporation:

More Complicated to Form. Articles of Incorporation and
other formation documents must be prepared and filed with the state in
which you incorporate. Normally, you will need paid assistance and there
will be certain filing fees paid to your state, so there is expense
involved. At least with a corporation you are getting the offsetting
benefit of limiting your personal liability.

Requires Separate Bookkeeping. Since a corporation is
regarded as a separate enterprise from you personally, you will be
required to keep separate books and records for business and tax
purposes. This may require an accountant or CPA to assist you in setting
them up properly.

Separate Income Tax Returns. Generally, a corporation
will be required to file its own separate income tax returns. You do not
report the corporation's income and expenses directly on your personal
tax return.

Annual Filing Requirements. You state of incorporation
will require at least one annual report to be filed for your
corporation, and there will be a small fee charged by the state in
connection with that filing.

Limited Liability Companies (LLCs)

Limited
liability companies are probably the most popular entities these days.
They are gradually replacing corporations and the "go-to" business
entity.

So as to not over-extend the length of this article, I'll
just list the advantages and disadvantages without more discussion,
since they are almost identical with the remarks about corporations.
Where there's a difference, it will be pointed out.

Advantages of an LLC

No Personal Liability (See discussion under corporations)

More Professional Image (see discussion under corporations)

One or More Owners. An LLC's owners are called "members." The law allows an LLC to have one or more members.

Disadvantages of an LLC

More Complicated to Form (See discussion under corporations)

Requires Separate Bookkeeping (See discussion under corporations)

Separate Income Tax Returns. A multi-member LLC will be required to file
its own income tax returns. For single member LLCs, there are some
special opportunities with respect to how they are taxed for income tax
purposes. Often, the single member can choose to have the LLC
disregarded for income tax purposes. That does not, however, jeopardize
your liability protection from lawsuits.

Annual Filing Requirements. (See discussion under corporations)

Summary

I think it's fair to say
that limited liability companies are the most recommended entities,
especially for online businesses. As a general proposition, they offer
the same protection of your personal wealth from business liabilities
that a corporation does, and LLCs are usually considerably more flexible
as far as what the law allows in their management structure.

There
are a lot of subtle nuances that professionals can debate when
considering the pros and cons of the various forms of doing business.

In reality, though, the main concern for most smaller businesses is liability protection for the owner's personal assets.

Liability
protection can be gained by using a corporation (S or C) or an LLC as
the entity for operating your business. Liability protection is not gained by operating as a sole proprietor or in a partnership (formal or unintended).

Sunday, May 21, 2017

A will is a legal document that outlines what one would want to happen after their death in terms of their funeral, care for their children and most important of all, distribution of their estate. When a person dies having drafted their will, they are said to have died testate in legal terms. The opposite of this would be dying intestate. A will usually specifically states the name of an executor, a person entrusted by the testator or testatrix with the task of executing the will after their death. An executor could be a close family member, a relative, trusted friend or even an attorney. An executor is usually referred to as a 'representative of the estate in probate' in a will in order to cover executors of both gender.

A will is very important because it makes things a lot easier for the family of a deceased person especially when it comes to estate distribution issues. A will reduces the possibility of disagreement or misunderstanding between family members when trying to figure out the deceased's death wishes. Administering a will is however not as easy as it may sound. This is because the law requires wills to be validated by a court which could take a couple of months to do. Validation of a will is done by the executor by applying for a Grant of Probate in a probate court.

Probate is the legal process of identifying, validating and distributing the estate of a deceased person under strict court supervision. The probate process includes payment of outstanding debts to creditors and payment of outstanding taxes such as death and inheritance tax. A probate court is a special court that interprets the will and validates any claims on the estate made by third parties such as the creditors of the deceased. The court oversees the probate process right from when the executor files for a grant of probate, up to when it is granted and ownership of the estate is transferred to the beneficiaries.

For the executor of a will to be granted probate, they will have to first present to the probate court registry, the deceased's will and a solicitor approved oath. The oath shows that the executor is committed to administering the wishes stated by the deceased in the will. The executor named in the will is usually not recognized by the law until the probate court officially appoints them as the representative of the estate in probate.

If a will was properly drafted, it takes the court a shorter time to grant probate. Incase the beneficiaries are not completely satisfied with the court's decision, probate law allows them to contest the validity of the will in the same court. In such a case the estate remains frozen until the court makes a validity judgment. In the event of intestate death, or if there is no executor is named in a will, the grant of probate is referred to as a 'Letter of Administration'. It is also acquired through a court process and is issued to the person that the court deems fittest to execute the will or distribute the estate.

Saturday, May 20, 2017

You might be questioning what is the meaning of incorporation. Incorporation is giving your business a mind of its own, an independence. When incorporated, your business becomes a legal body with its own function separate from its owners and cannot be owned by only one owner.

When incorporating a business, one should decide whether he should incorporate his business federally or provincially.

In incorporating federally, the advantages are; (a) your corporation should be able to carry on business in all provinces as long as you register your business in a province or territory where you would conduct your business in, and (b) your corporation can use the same name even if another company is already using the similar name. The disadvantages are; (a) federal incorporation is costly, and (b) there's a lot more of paper work to do annually. When incorporating provincially, your business has the right only to undergo business within the province or territory where your business is incorporated.

It depends upon the limitation of the business to be incorporated whether to choose a federal incorporation or provincial incorporation.

How to incorporate in California?

First, you should select a proper name for your corporation. Selecting a corporate name is more difficult than selecting a name for single proprietorship or partnership because it requires legal, distinctive and descriptive elements in choosing a name.

Second, prepare or print the articles relating to how to incorporate in California, the Memorandum and the Notice of Offices. The articles of how to incorporate in California sets out the rules and regulations that will govern the conduct of staffs and members of the company. The Memorandum sets out the rules for the conduct of the company. And, the Notice of Offices states the location of the two required offices for your incorporation, the registered office and the records office.

Third, file your incorporation documents and apply for incorporation. Find the Secretary of State office and take the completed forms with at least three copies. The incorporation fee in California costs $100.00 and $15.00 if you want to get it on the same day or they just mail to you the finished documents.

Fourth, the last step is to file the list of officers at the same office. As long as you know who the officers are and they know what are their duties, you just have to fill the names of the officers and their addresses. It only costs $25.00 to file this paper. Then, you could start your incorporation business at any time.

I hope this article would be helpful to those enthusiastic businessmen who want to find solutions on how to incorporate in California.

Incorporating in California has become more and more popular with entrepreneurs and business-minded people searching to make their company popular so as to attract investors. Many have asked how to incorporate in california and thought it's quite difficult to apply for an incorporation. There are a number of factors to be considered but though, California incorporation is still best for your company.

Friday, May 19, 2017

Have you ever thought about what would happen if you became unable to make your own decisions, perhaps because of illness or medical condition, such as a stroke or coma? Using a relatively simple legal document known as a Durable Power of Attorney you can legally empower another person -- such as a trusted relative or friend -- to act in your behalf, even if you became physically or mentally unable to manage your own affairs.

Thursday, May 18, 2017

Are you operating your business as a real business or as a hobby? It's
time to make your business OFFICIAL before the summer push for business!Let me ask you two important questions:

Are you operating your
business under your own name, a DBA or fictitious firm name, basically
as a sole proprietorship or maybe as a general partnership? AND/OR

Are you or your family
at risk because of business or personal assets that are unprotected
from unexpected losses or legal issues?

If you answered YES to either question please read on for important
news about why NOW is the time to form an corporation or LLC for your
business.

Make it Official. Operating
as a sole proprietorship or general partnership sends a message that
you are still "testing" your business, or that you're not sure you'll
really make it. Perhaps your accountant told you that incorporating is
an unnecessary expense or that it won't help you save on taxes due to an
expectation of low profits. This is the WORST marketing message you can
send when you want to attract new clients and partners to your
business, who want assurance that you're about your business and here to
stay.

The Law of Attraction. You
get what you focus on. Testing, hoping and "seeing if things work out
or not" BEFORE you decide to step-up and make your business official by
incorporating broadcasts a clear message to the universe that you're not
really serious about your business or committed to a positive outcome.
The Law of Attraction states that the universe returns not what you wish
for, but what you program into your deepest belief system through your
dominant thoughts, actions and feelings. Making your business official
and really stepping up says, "I am ready to receive!".

Limited Personal Liability. You
may be thinking "I already lost everything in the market collapse from
2008" and still recovering. If you're one of the few that managed to
survive and grow your assets since then, but are still holding them in
your own name, you're playing a VERY RISKY game (similar to those with
assets in unstable European banks). Even if you don't have any assets
right now, a lawsuit or judgment will destroy any credit you are looking
to build in the future PLUS you may be looking over your shoulder for
years waiting for someone to come after you when you finally do start to
turn things around. That's no way to live your life. One lawsuit from
an unprotected business can ruin your chances of getting a personal auto
loan or refinancing your home. Good people who "play by the rules" can
still be sued for the most unexpected reasons. You may be thinking "my
business insurance will help me out" but are you really covered? Even if
your business is never sued, what if you're unable to pay a vendor and
they come after you? Do you want to be personally liable? Put a halt to
greedy people looking to take what you have worked for! This is the best
time to form an LLC or corporation to limit your personal liability.

Reduce Your Taxes. The
bottom line is that operating as a sole proprietorship will cost you
the most in employment taxes (up to 15.3% on earned income up to
$113,700 in 2013). That means that your income will be taxed as the
HIGHEST possible TAX RATE as a sole proprietorship. By the way, filing a
Schedule C (the form filed for earned income from a sole
proprietorship) also means that your business is among those MOST LIKELY
TO BE AUDITED. Why? The IRS has a $300 BILLION tax gap and they believe
the biggest tax cheats are the little business owner like you. Why?
Their stats show them that sole proprietorship are MOST likely to UNDER
report their income and OVER report their expenses (two big no-no's with
the IRS). Operating as an S corporation or LLC taxed as an S
corporation in many situations is a much better approach for two
reasons. You will have part of your profits as distributions which are
NOT subject to the 15.3% employment taxes AND move that profit to
schedule E, not schedule C which is more likely to be audited!

Access More Funding Options. Operating
as a sole proprietorship or general partnership limits you when it
comes to funding options. You are also DAMAGING YOUR PERSONAL CREDIT
SCORE by operating this way. How do you finance your business as a sole
proprietorship? You use your PERSONAL CREDIT cards which will drive up
your revolving debt which will in turn DRIVE DOWN your personal credit
score! When you form a corporation or an LLC you will SEPARATE your
PERSONAL and BUSINESS CREDIT. Yes, any type of cash funding with a
personal guarantee will come into play, but that DEBT does NOT show up
in the personal credit bureau which is HUGE for future funding! As you
form a new LLC or corporation NCP will help (if you choose) to build
your business credit scores quickly and get your business in a position
to secure funding to grow. But the first step is to form a separate
legal entity.

Simply Your Life. Yes,
in fact operating as a sole proprietorship will complicate your life,
not the opposite. Separating your business and personal life will make
it much easier for you to navigate both from a financial and legal point
of view. Now you will have each in its own compartment where it belongs
to protect your overall success.

Asset Protection. Forming
an LLC for your safe assets like investments (those outside a
retirement plan) will help you sleep better at night knowing you don't
have all your "eggs" in one basket. If you are using a LIVING TRUST to
protect your assets that will NOT work and everything in your trust may
be vulnerable. Do you own other businesses that really should be
operating through a separate bank account in a separate entity? Do you
own real estate in your own name that may be sending a message that you
are rich and have assets worth taking? Have you been in business for
years or are you operating more than one business in one entity? Are you
doing some business with a new partner and making the big mistake of
running that revenue through your current business? Avoid these costly
mistakes and form a separate company for that separate business.

Tuesday, May 16, 2017

Starting a business requires prospective entrepreneurs to make
hundreds of different decisions before opening their doors to customers.
One of the most important decisions is selecting the right legal
structure for your enterprise. The manner in which you choose to
organize will impact your taxes, personal liability exposure, and
fundraising options.

Sole proprietorships are the most common
arrangement for people who work alone. This structure is a popular
choice because it is the easiest to arrange and does not require any
filings with the state. One of the biggest disadvantages of the sole
proprietorship, however, is that entity does not exist apart from the
owner. Consequently, the owner is personally liable for all financial
obligations and damages resulting from lawsuits filed against the
company. Another disadvantage is that it can be difficult to raise
capital. Banks are reluctant to make loans to sole proprietorships,
leaving the owners to rely on home equity loans or borrowing from
family.

For enterprises with more than one owner, a partnership
might be a good arrangement. Each partner contributes capital, labor, or
expertise in order to turn a profit. The partners share in the profits,
but like a sole proprietorship, they are also personally liable for
debts and damages. One way in which partners can reduce personal
exposure is by forming a limited partnership. This form consists of
general partners who make decisions and assume the risks and limited
partners with no control in the operations in exchange for reduced
liability. Tax treatment is one of the main reasons this arrangement is
selected. Profits and losses are passed through to the individual
partners.

Limited Liability Companies, or LLCs, are a type of
structure that is becoming very popular. This structure creates an
entity separate from the owners. As a result, the owners are not liable
for debts or judgments against the venture. Unlike a limited
partnership, all members are free to participate in the management and
enjoy protection from personal liability. LLCs also enjoy pass through
taxation. However, the tax rules for these structures are complicated.
The amount of paperwork is a huge hurdle, and members must file articles
of organization with the Secretary of State or sign an operating
agreement.

The right structure for your business depends on a
number of different factors unique to your enterprise. For example, a
small boutique selling handmade cat collars will obviously have less
risk and perhaps less revenue than a company that provides window
washing services to high-rise office buildings. Prospective
entrepreneurs are advised to contact their attorney or accountant in
order to discuss the taxation and liability consequences of the
different entities. A number of free or low-cost resources to help you
make your decision are available from your local chamber of commerce,
Small Business Administration, or volunteers with the Service Corps of
Retired Executives.

Selecting the organization for your business
is one of the most important decisions you and your partners will make.
Research all of the available options and seek advice from experienced
professionals before making your selection.

Monday, May 15, 2017

Question: I just came back from my attorney with
my estate planning documents. One of my documents is a "living will,"
but I have no idea where to put it. How about putting it where it will
be safe, like in my bank's safe deposit box?

Answer:
Remember that a living will is only useful if it is found! You should
store your living will (also called an "advance healthcare directive")
where it will be found when it is truly needed.

If your family has
no idea where your living will is, the document is useless. If it is
never found, it is a legal document without any effect. It will never
serve any function. The purpose of having a living will in the first
place is to grant authority to your agent: Through that document your
agent is given the legal authority to make essential healthcare
decisions on your behalf. But if your agent cannot find the document,
he or she may never be able to make the decisions that you intend.

Where should you never store your living will? Here are some places to avoid, the first being exactly where you are thinking of putting it:

Your safe deposit box.
Sorry, but think again! If your agent does not have access to your
bank safe deposit box, obviously he or she may never be able to get the
living will in time so that it can be used.

Your home safe.
This is like placing your healthcare directives in the bank's vault.
If only you have the combination to the safe, then your agent will
probably never find it.

Giving it to someone unknown to your agent.
This is another way to "lose" your directives -- giving the living will
to someone other than your agent, without your agent's knowledge.
Again: If your agent has no idea where the living will is, then how can
he or she get it?

Giving the original to someone at odds with your agent.
Some of you may have intra-family turmoil. Obviously, never give your
living will with someone who often fights with or is at odds with your
designated agent. Remember: The purpose of the living will is to ensure
that your wishes are carried out. PERIOD. Your directives are not to
be used in a way to be "fair" to another family member, or for any
purpose other than ensuring that your wishes are followed.

Putting it where nobody would ever look.
This is a general category. Never place your living will in a secret
place, or in the middle of a "mess." It should be kept in a place known
to your agent, or otherwise where important papers are kept.

So
many people go to the expense of preparing a living will, but give
little thought as to where it should be kept. Even more important, they
place their living wills in entirely inappropriate places. Make sure
that your agent knows where you have stored your living will.

Disclaimer:
The information in this article is not legal advice, and the use of it
does not create an attorney-client relationship. Any liability that
might arise from your use or reliance on this article or any links from
this article is expressly disclaimed. This article is not to be acted
upon as if it were legal advice, and is subject to change without
notice, or may include obsolete or dated information, or information not
relevant to your jurisdiction. If you require legal services, you
should consult with an attorney.

Saturday, May 13, 2017

An Uncontested Divorce is a legal procedure in which the spouses
mutually agree on certain terms and conditions, in order to adjourn
their marriage. An uncontested divorce can be executed successfully if
the spouses comply to a shared agreement in the matters related to the
property partition, financial matters, any kind of support activities
related to their children, and other litigious affairs.

A major
benefit of consenting with an uncontested divorce is that unlike
contested divorce, it doesn't have to deal with emotional and financial
issues, is relatively inexpensive and quick, since most of the times the
spouses may not find any need of an attorney or a court case for the
divorce, if they are in good terms with each other, and plan to go with
proper understanding. This is quite helpful essentially when the couple
has much less assets to deal with and no children.

There are many
"Do it yourself" forms available at concerned regulatory agencies, which
can assist you in going ahead with the uncontested divorce activity
yourself, without the need of any outside legal authority or
attorney.But, in case of the issues for child support or the partition
of community property, one must follow up with attorney related to
divorce, before they proceed with signing off any legal documents.

Divorce
is a quite tedious and sometimes displeasing procedure.Despite having
mutual consent on many of the terms, there still exist loads of matters
that need to be taken care of, before ending up the marriage. The couple
needs to be capable enough to distinguish these issues and resolve them
as soon as they can. To decide whether it is appropriate for a couple
to go ahead with an uncontested divorce rather than a contested one,
there are certain points that can be used as reference:

1) Are both the spouses agreeing to go for a divorce, or one of them still wants to re-establish the relationship?

2)
Are all the financial issues, modes of income and other related assets
properly understood by both the spouses, so that they can divide and
decide on them accordingly?

3) In case, there are children, are
all the issues regarding the child care and support,custody, periodic
meetings and visits decided yet?

4) Are all the issues getting settled with mutual consent, and are devoid of any hard feelings?

5)
Are both the partners in accord with the honesty or authenticity of the
other partner's notions,regarding the resolution of these issues?

If either of the above mentioned questions, has an answer as "yes", then it is appropriate to go for an uncontested divorce.

Uncontested
divorce can be carried on easily and without much hassles, but they can
be derogatory to certain individuals in case the people involved in the
divorce, do not know much about their appropriate rights with respect
to the alimony amount, partition of pension, earnings from real estate,
and other modes of income.

Friday, May 12, 2017

So you currently have your own business and you're pondering over
whether or not you should incorporate it, or carry on as a sole trader?

Before
you make the incorporation decision, you need to consider all of the
advantages and disadvantages that incorporating brings.

This article will set out to explain the benefits and downsides to incorporation, starting with the benefits ...

Benefits of Incorporation:

Personal Liability Protection

An
incorporated company is a separate legal entity responsible for its own
debts. Shareholders only have responsibility for servicing debts and
liabilities up to the value of their equity in the Company.

Creditors
of a corporation can only seek payment from the assets of the
incorporated business and not from the personal assets of shareholders,
directors and officers.

As a small business owner of a non
incorporated company, your personal assets are at risk if your business
fails to service it's debts.

Personal liability protection is therefore a major benefit of business incorporation.

However,
owners forming new corporations with small amounts of invested capital
may well be asked to provide personal guarantees that credit will be
honoured to reduce the risk of the lender.

Also, owners of incorporated businesses are required to personally ensure that the company makes its required tax repayments.

Protection From Legal Action

As
with personal liability protection from debts above, the personal
assets of the company's owners is protected by the separate legal entity
status in cases where the incorporated company faces legal action.

Note,
incorporation does not protect a company's officers from liability and
prosecution in cases where the company is found guilty of criminal
negligence.

Tax Advantages

Some incorporated businesses can
enjoy lower taxation rates following business incorporation compared
with partnerships and sole traders. One way of achieving lower taxation
is to minimise the salary paid to the owners to reduce higher rates of
personal taxation, and draw income from the business in the form of
dividends which are taxed at a lower rate.

Obviously professional
advice from a qualified taxation expert should be sought in all
instances as all personal circumstances are different.

Other
taxation benefits of incorporation are that once incorporated, many
additional items of expenditure become tax deductible. For example
medical expenses, entertainment expenses, vehicle and travel costs,
recreational facilities and pension costs all become tax deductible.
This can be a significant cash benefit. In particular money placed in
an approved pension plan is tax free as is the funds growth.

Raising New Capital

Once
you've incorporated your business, the ability to issues shares
simplifies the process of raising capital investment. It's also easier
to get loans and other finance approved from financial lending
institutions if you are an incorporated company.

Transferring Ownership

The
existence of shares also simplifies the sale of your business in the
future. Also should an owner or director die, the business can continue
to operate indefinitely.

Business Credibility

Having the words Inc or Corp in your business name gives a positive perception of long term financial stability.

Disadvantages of Incorporation

Double Taxation

Once
incorporated, earnings are subject to double taxation, whereby, company
profits are taxed, and then the dividends paid to shareholders from the
"net" profits are also taxed.

With a non-incorporated business,
the income the owner receives from the business is only taxed once.
Double taxation can be avoided if the corporation is registered as an
"S-Corporation"

Statutory Compliance Costs

Compliance with
legal and accounting requirements places a significant burden on
companies in terms of staffing, cost and time. There are also fees
associated with the initial company incorporation, and ongoing
operations.

Loss of flexibility The separate legal entity status
of incorporation also means that the company finances are separate from
the individual's, therefore the individual cannot "borrow" money from
the accounts of the corporation, and statutory requirements in general
reduce the flexibility of what can and can't be done with the business
and its finances.

The above are some of the key advantages and
disadvantages that you as a business owner need to consider before you
begin the process of incorporation. You should always seek legal advice
as all cases are different.

Thursday, May 11, 2017

Divorces are often easier to get than annulments because annulments require proof that the marriage was procured or initiated through fraud. Get a marriage annulment and understand misconceptions about annulments with advice from a certified family mediator in this free video on legal self-help.

Wednesday, May 10, 2017

A will is an important document for any person to have. This
document simply provides directions on how your property will be handled
when you pass on. Many times, when people die without a will in place, a
lot of misunderstandings can arise within the family and the community
at large. It is therefore important to specify how one's property or
estate will be handled to avoid these misunderstandings.

A will
writing service is important to help you come up with your will. It is
possible for you to write your will without any help but if you are not
familiar with this process, you need guidance so that you can write a
will correctly.

The first thing you need to do is identify a good
will writing service that has the requisite experience and reputation to
ease the process of making a will. There are a number of benefits that
you will get when you work with a will writing service. Some of these
benefits include:

• Correct Structure

Certain things are
required when you are drawing up your will. You must indicate that you
are of the right age and of sound mind. You must also indicate that this
is your last will and testament. You still are able to amend your will
at any time you wish to.

These services will also help you to
understand technical terms used when writing a will. A man writing a
will is called a testator while a woman is called a testatrix. The will
has to be signed by the testatrix or the testator and signed by two
other witnesses.

• Tax Implications

Certain assets or
estates can have tax implications. If you leave your estate to someone
else other than your spouse, they might be required to pay taxes on it.
It is important to know this in advance and plan for it accordingly.

• Will Execution

Another
important aspect to consider is the executor of the will. This is the
person who will carry out the terms of the will should you pass on. The
person who helps you write the will can also be the executor if they
have that capacity. If not, you should name the person or company to
carry out this function.

Making a will should not be a problem for
you. With the right people to help you, this process will be easy. It
will allow you to rest well knowing that your estate will be handled
correctly when you pass on.

Tuesday, May 9, 2017

Calculating and paying for taxes is never easy. It's especially
tricky if you are a member of a limited liability company, since this
business structure allows for a wide range of tax treatment options.
Lucky for you, there's this guide to help you navigate the murky waters
of LLC taxation.

General Rules

How your LLC will be taxed
depends on whether the IRS views your company as a sole proprietorship, a
partnership, an S corporation, or a C corporation. The IRS may tax the
individual members, the LLC as a whole, or both. Remember that the LLC
is legally considered a different business entity from the members
comprising it. Understanding this distinction will make the concept of
LLC taxation less confusing.

Sole Proprietorship

LLC
taxation for one-member companies is straightforward: the lone owner
pays the LLC's taxes based on the company's net income. There is no need
to file separate returns for the owner and the company.You can choose
to have your company treated as a corporation-provided that you also
allow it to be taxed as such.

Partnerships/Multi-Owner LLCs

Multi-owner
LLCs file two separate tax returns: the 1065 partnership tax return for
its business income, and the Schedule SE tax form for the
self-employment taxes of each member. Self-employment taxes depend on
the agreed profit-loss sharing between the members.

C Corporation

LLC
taxation rules for this business structure work like that of a standard
corporation. Essentially, the aggregate profits of the C corporation
are taxed according to the prevailing corporate tax rate, and any
profits distributed as dividends among members are taxed according to
the dividend rate. Though the members don't need to file individual
returns, they still need to pay payroll taxes in behalf of their
employees.

S Corporation

The LLC taxation system for S corps
is unusual. A return is filed in behalf of the LLC (i.e. Form 1120S),
but the company's profits aren't taxed as a whole. Instead, tax money
comes straight out of the individual members' pockets, again according
to their operating agreement. The members declare these taxes via
individual returns.

The LLC taxation system is only one of several
considerations you have to bear in mind when choosing an LLC structure.
All of these have their pros and cons, and it's important that you do
your research on which structure is in the best interest of your
company. Always take time to consult the experts, like your lawyer,
accountant, or even registered agent.

Monday, May 8, 2017

No one can foresee problems that may arise should he become
incapacitated. Yet, you can avoid negative consequences of unforeseen
problems by creating Living Wills and Healthcare Power of Attorneys
(HCPOA).

Setting up a Living Will or HCPOA is a relatively simple
task. The first step it to consult with an attorney that specializes in
estate planning to ensure that your documents are clear. Here's an
overview of what you can expect from your Living Will and HCPOA.

Healthcare Power of Attorney

The
HCPOA, otherwise known as a "healthcare proxy" is a legal document that
enables an individual that you appoint (your "agent") to act as your
healthcare representative if you become incapacitated. The agent becomes
your acting representative at the moment you become incapacitated, thus
eliminating the need for your loved ones to argue over your rights and
wishes in court.

Your agent has the authority to request or deny
any medical treatment that he determines to be appropriate. Therefore,
it is a good idea to choose someone that you trust as your agent. Please
note: In most states, your spouse will be your default agent. If you
are not married but are in a lifelong relationship your partner, he does
not automatically become your agent. Make sure that you appoint your
partner as your agent to ensure that he or she has control over your
medical decisions if you are unable to make them.

Because your
agent has whatever powers you give him or her, make sure that he or she
understands your desires. Some of the decisions he or she may need to
make include but are not limited to:

Deciding whether or not you will receive medical treatment

Withdrawing life-support

Living Will

A Living Will and HCPOA should be used
in tandem, since one document complements the other. Your Living Will is
a document that clearly expresses your desires. In short, your Living
Will provides your medical team with instructions for how to carry out
your wishes should you become incapacitated. For example, if you become
brain dead, you can state in your Living Will that you wish to receive
or not to receive life support.

By creating a Living Will, you
ensure that your desires will be carried out without court involvement
that can be costly and stressful for your family. Criteria for enacting a
Living Will vary by state; so make sure that you consult with an
attorney to ensure that your Living Will complies with the rules in your
state.

Saturday, May 6, 2017

Living Trust or a will? Rene talks about some of the differences and what sets one apart from the other to help you make the best decision for your needs. Call Rene or Tammy at 707-428-9871 with any questions you may have, and see their website at http://www.bythepeopleca.com

Friday, May 5, 2017

What is insurance? A thing providing protection against a possible eventuality.

Given
the advances in medical technology, there are many possible
circumstances in which my body may be kept alive even if my mind may
have ceased to function. This could result from accident or disease. It
could occur in the near or distant future. Under these circumstances, I
have very specific desires of things that I want to be done and others
that I want to stop or prevent from occurring. Can I take out an
insurance policy that will protect me against institutions or people
taking actions that are against my wishes? Yes, it's called an Advance
Directive.

This form of insurance can be acquired without an agent
or attorney. To get this coverage you must invest some time and energy
to get your state's forms and fill them out. This is usually a two-part
form with the first section designating who can make health care
decisions for you in the event that you are not capable. This is usually
called a Medical Power of Attorney designation. The second part,
sometimes referred to as a living will, is where you are able to give
physicians and family specific instructions regarding your care. The
forms can be downloaded on-line from several different sources or can be
picked up from any hospital in your area.

The mechanics of the
process can be a little difficult and uncomfortable. This small
discomfort allows for procrastination to jump in and convince you that
this is a good idea and you really should do it someday, but not today.
Maybe you'll do it next week or next month. One way to help you get over
the hurdle of procrastination is to really look at some of the many
benefits that you get from completing this task.

Three benefits of Advance Directives:

Peace of mind from knowing that you have insurance in place.

A huge gift will be given to your family and loved ones. In the
event that it is needed, they will be greatly helped and assured that
you are guiding their decisions.

Protection of your estate and financial assets. Medical institutions
are allowed to utilize their technology to prolong life even when the
outcome may be futile. This process can drain your financial resources
and possibly impoverish your family.

When you discipline yourself to create an advance
directive, set aside adequate time to consider specific details. The
more specific you make your wishes, the better the quality of your
policy. After completing the process you will enjoy a deep sense of
satisfaction. So set a deadline to help you guide the process and make
it happen.

Thursday, May 4, 2017

There are several common legal structures that you can set your business up under. Which one you chose is going to depend on what kind of business you are setting up, who else is involved in this plan with you, your own personal preferences, among several other factors.

Here is a quick overview of your options.
Sole Proprietorship

This is still the most common type of business structure, particularly for small businesses that are just starting out. This means that one person owns and is responsible for the business. They make all the decisions, but they also hold all the financial responsibility. The profits or losses from the business are reported on the proprietor's personal taxes.

General Partnership

This is very similar to a sole proprietorship, except that there is more than one person involved in owning and operating the business. The business is still connected to you, but also to your partners. This means you all share in the management and financial responsibilities of the business.

Corporation (LTD or INC)

A corporation is an entity that is formed and does business on its own, separate from anyone personally. This means that the financial situation of the business does not roll over onto the person who owns the business.

While this may seem like the better option to avoid personal liability if something happens within the business, it can be extremely tedious and expensive to set up and maintain. This is not a viable option for most small business owners because most of them cannot afford the set up fees or maintenance of records required.

Limited Liability Company/Corporation (LLC)

This is a newer and very popular type of business structure because it offers the benefits of a corporation, does not require a lot of the same hassle. Unlike a limited liability partnership, you can set up this type of company with only one person. It provides a lot of the financial protection of a corporation, but does not require as extensive measures to upkeep.
Limited Liability Partnership (LLP)

This is a different type of partnership, but it also provides some of the financial protection of a corporation. Unlike an LLC, you must have at least two partners. However, it is easier to maintain and keep your structure than an LLC. This business structure is also much more common in the UK, which LLCs are more popular in the US.

How you set up your business is an important decision. The structure you choose could make a big financial and legal difference. It will depend on many factors, including local laws. Take the time to research your options and talk to an accountant or other business professional and anyone else involved in your business before making your decision.

Wednesday, May 3, 2017

New research by Lauren Nicholas at University of Michigan's Institute for Social Research shows that making a living will impacts the end of life care of individuals. This is the first national study involving sample from across the US.

Tuesday, May 2, 2017

Most people have heard the word probate before, but they might be wondering 'what is probate?' The probate process can refer to several things. The probate court determines whether or not a will is valid. If an executor is not named in the will, the court will assign an executor to perform those duties. However, the entire process of administering the estate of the deceased according to the will's instructions can also be referred to as probate. Many people think that an executor simply reads the will and hands out the bequests to the heirs. There is so much more involved in the duties of an executor during probate.

The actual court probate process is only a part of the responsibilities of the will's executor. The first duty is to file a petition to start probate in each of the states where the deceased owned property. Because each state has slightly varying probate laws, the answer to the 'what is probate?' question will change a little depending on a specific state's legal code. However, there are some common events between states when it comes to processing wills and other estate administration. Before the executor of the will can even be formally appointed or approved, a petition has to be filed, a notice of petition must be published with a certain amount of lead time (usually at least 15 days), the legal documents must be given to the judge for approval, and the concerned parties (such as beneficiaries) must be notified.

Following these notifications, the court hearing will formally begin the probate process and approve the named executor of the will. After the court hearing, the executor needs to inventory all of the deceased's assets. This information has to be filed with the probate court. Next, all creditor's claims are addressed and paid off. The IRS also has to be paid. It is the executor's responsibility to file all taxes, including income, estate, and others, by their respective deadlines. The timelines are not adjusted due to the death of the taxee. What is probate? It's probably a lot more than most people realize.

Once all debts and taxes are paid, the executor of the will files a petition for the judge's approval of the distribution of assets to the beneficiaries. The concerned parties are notified, and there is a court hearing where the judge approves the distribution of assets. Finally in the probate process, the executor transfers those assets to the beneficiaries. These steps are the main answer to the 'what is probate?' question.